Trade-Ideas LLC identified

Finish Line

(

FINL

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Finish Line as such a stock due to the following factors:

  • FINL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $30.1 million.
  • FINL has traded 405,322 shares today.
  • FINL is trading at 6.59 times the normal volume for the stock at this time of day.
  • FINL is trading at a new high 7.03% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on FINL:

The Finish Line, Inc., together with its subsidiaries, operates as a specialty retailer of athletic shoes, apparel, and accessories in the United States. It operates Finish Line stores that offer athletic shoes, as well as apparel and accessories for men, women, and kids. The stock currently has a dividend yield of 2.1%. FINL has a PE ratio of 15. Currently there are 8 analysts that rate Finish Line a buy, no analysts rate it a sell, and 11 rate it a hold.

The average volume for Finish Line has been 1.2 million shares per day over the past 30 days. Finish Line has a market cap of $845.9 million and is part of the services sector and specialty retail industry. The stock has a beta of 1.14 and a short float of 10.1% with 2.77 days to cover. Shares are up 5.5% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Finish Line as a

hold

. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:

  • Net operating cash flow has significantly increased by 66.50% to -$15.76 million when compared to the same quarter last year. In addition, FINISH LINE INC has also vastly surpassed the industry average cash flow growth rate of 7.68%.
  • FINL has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.40 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Specialty Retail industry and the overall market, FINISH LINE INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • The gross profit margin for FINISH LINE INC is currently lower than what is desirable, coming in at 26.06%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -5.71% is significantly below that of the industry average.

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